# In the matter of Jhelum Industries Pvt. Ltd. MA 2875-2019 in C.P. (IB)-1235-(MB)-2017

> NCLT judgment dated 2020-02-07. Citation: TCN-2020-NCLT-02044. The case involves an application by the Liquidator seeking dissolution of the Corporate Debtor,…

- **Court:** NCLT
- **Order date:** 7 Feb 2020
- **Citation:** TCN-2020-NCLT-02044
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jhelum-industries-pvt-ltd-ma-2875-2019-in-cp-ib-1235-mb-2017-6dad7b1e

## Summary

### Background

The case involves an application by the Liquidator seeking dissolution of the Corporate Debtor, RSAL Steel Pvt Ltd, under Section 54 of the Insolvency and Bankruptcy Code (IBC), 2016, and discharge of the Liquidator. The liquidation process was initiated following an order passed on 20.3.2018. A public announcement was made on 29.6.2018, after which claims were received from creditors. The Liquidator submitted progress reports and a final report detailing the liquidation process and asset liquidation.

## Facts

The Corporate Debtor, RSAL Steel Pvt Ltd, underwent a liquidation process initiated by an order on 2018-03-20. A liquidator was appointed to oversee the process. A public announcement regarding the liquidation was made on 2018-06-29, leading to the receipt of claims from various creditors. The liquidator determined the realizable value of the Corporate Debtor's assets to be Rs. 15,263, which was the amount in the bank account. Progress reports were submitted to the NCLT. The liquidator then filed an application seeking the dissolution of the Corporate Debtor under Section 54 of the IBC, as no other assets remained. The creditors included RSAL Steels Pvt Ltd, Ruchi Agri Fresh Pvt Ltd, Ruchi Global Ltd, Vibhuti Enterprises, Ruchi Acroni Industries Ltd, Agroweb Online Pvt

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor under Section 54 of the IBC should …

**Ratio:** Section 54 of the IBC allows for the dissolution of a corporate debtor after the

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**Reasoning:** The court reasoned that the Liquidator had completed the liquidation process, submitted

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**Interpretation:** Section 54 is interpreted to mean that once the liquidation process is complete

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Respondents:** RSAL Steel…; Jhelum Industries…

## Timeline

- **2018-03-20 — Order for Liq…**: The Bench passed an order for the liquidation of the Corporate Debtor, appointing a…
- **2018-06-29 — Public Annou…**: The liquidator issued a Public Announcement about the initiation of the liquidation…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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